Why is India's sugar output expected to decrease?

Excessive rainfall across major producing states has led to reduced cane yields, impacting the overall sugar output.

How will lower sugar production affect India's exports?

India may struggle to meet its allocated sugar export quota, with projections suggesting less than half of the quota might be shipped.

What is the impact of reduced sugar production on prices?

Lower domestic output and anticipated demand increases are expected to support Indian sugar prices, while also bolstering global prices.

Home / Business and Economy / India's Sugar Output Dips Amidst Heavy Rains

India's Sugar Output Dips Amidst Heavy Rains

18 Feb

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Summary

Excessive rainfall significantly reduced cane yields across India's key sugar-producing states.
India may export less than half of its allocated sugar quota due to lower production.
Domestic sugar prices are rising, while global prices are supported near five-year lows.

India's Sugar Output Dips Amidst Heavy Rains

India's sugar output is facing a downward revision, with forecasts now indicating lower production than previously estimated. Excessive rainfall across major producing states like Maharashtra, Karnataka, Uttar Pradesh, and Gujarat has led to significantly reduced cane yields. This development is expected to curtail India's sugar exports, potentially impacting global sugar prices. Internal estimates from trade houses suggest production for the 2025/26 marketing year could be between 28.5 and 29 million metric tons, a decrease from the Indian Sugar & Bio-Energy Manufacturers Association's forecast of 30.95 million tons.